The DVD, game and video rental business is a $4 billion industry in the United States according to market research firm IBISWorld. The bricks and mortar segment of this industry has been on the decline, as consumers opt for downloading movies and other media rather than bringing them home from the rental store. However, a movie rental store can still be a successful business. Your business plan will be your guidebook to achieving success.

Create Your Vision

Write down what you will bring to the movie rental store business that is different and exciting -- what will set your store apart from the competition. Establish short and long-range goals for your business. For example, you may want to open just one store or you may believe your concept has enough potential that you will open multiple stores over the next three-to-five years.

Determine Target Market

Carefully study the predominant demographics in your area. A store in a community of senior citizens requires a different product and marketing strategy than one in an area with singles and college students. To succeed, any business must meet customer needs. Decide what unmet need there might be and how you intend to fill it. If your area has a large population of young married couples, for example, you could offer the widest selection of kid-appropriate movies.

Develop Business Model

Describe all the ways your store will generate revenue -- this is your business model. You don’t have to confine your business to movie rentals. You could sell previously viewed movies as well as renting new releases. Many movie rental stores also rent video games. Your business model could be to focus on one theme or movie genre, such as Thrillers or Westerns, and build a loyal clientele of fans of those genres. A themed store allows you to sell related products such as movie posters, books or memorabilia.

Analysis of Competition

Competition goes beyond other bricks and mortar movie rental stores and includes kiosks located in retail stores where customers can rent from a small selection of recent films. In your plan, also include other similarly priced entertainment options consumers have in the nearby area.

Marketing Plan

Your marketing plan includes the strategies you will use to get the word about your store opening and tell customers what’s new and different about your store. Superior customer service should be one of your strategies. If you can provide the customer with information about movies that they can’t get elsewhere else, they may rent movies from you even if you charge more than your competition. Make sure an active social media presence is part of your strategy. This is an inexpensive way of introducing yourself -- and your store’s unique concept -- to potential customers. For example, you could post your own movie reviews and spark a lively debate on discussion boards.

Financial Projections

Calculate all the expenses required to get started -- rent deposits, product displays, point-of-sale equipment, and beginning inventory. Complete a three-year projected profit and loss statement. You will likely lose money in the first few months after opening, so in your pre-opening budget include the funds you will need to keep the store running until you reach breakeven cash flow.

Presentation

Create a concise two to three page executive summary that contains the highlights of your business plan. The summary is often the first information a funding source asks to read, so it is critical to prepare the summary carefully. Ask trusted business associates to read the summary and assess whether it fully explains your vision for making the movie rental store a success. The business plan for investors or lenders should also contain an explanation of who the owners of your venture are, their respective ownership shares and the financial stake each has invested in the business.

References

About the Author

Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."